Two Hong Kong holding companies plan to issue TDRs

BIG PLANS:NewOcean said it would use proceeds to expand logistic capacity in Zhuhai, dredge out the channel to its terminal and repay its short-term debt

Staff Writer, with CNA

Two Hong Kong-listed companies filed applications with the Taiwan Stock Exchange (TWSE, 臺灣證券交易所) to issue Taiwan depositary receipts (TDR) on the main board, the exchange said on Friday.

NewOcean Energy Holdings Ltd (新海能源集團), a vendor and distributor of liquefied petroleum gas (LPG) in China, is planning to issue 130 million TDRs, each of which will represent two common shares of the company, which has been listed in Hong Kong since 1993.

The company currently operates a terminal in Zhuhai, Guangdong Province, China, for LPG storage and delivery, targeting customers located in southern China.

According to the TWSE, the company has tentatively set the issue price at NT$13 to raise NT$1.69 billion (US$58.5 million) from the TDR sale.

On its Web site, NewOcean Energy said it would use the proceeds to expand logistic capacity at its Zhuhai terminal, widen the channel to the terminal and repay its short-term debt.

Meanwhile, New Media Group Holdings Ltd (新傳媒集團控股), which has been listed in Hong Kong since 2008, is planning to issue 28.8 million TDRs, each of which will represent five common shares.

The company publishes and markets Chinese weekly magazines, while also providing a cross-selling platform for advertising clients.

The TWSE said New Media is expected to raise about NT$374.4 million from its TDR sale by tentatively setting the issue price at NT$13.

In its prospectus, New Media said it would use the funds as working capital to develop digital content as part of its efforts to diversify.

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